Settlement reached in Brant Street Pier litigation

Settlement reached in Brant Street Pier litigation

Court-ordered mediation has resulted in a settlement in the litigation around the delayed completion of the Brant Street Pier.

The deal, which sees a $2-million benefit to the City of Burlington, was reached Friday after two days of court-ordered mediation involving nine parties.

“After a long, arduous, complicated project, we are very pleased to report that the whole issue with regard to litigation with all the outstanding issues with the Burlington Brant Street Pier and the construction of the pier have been resolved,” said Mayor Rick Goldring.

City council approved the terms in a closed-door meeting this morning.

The settlement is still subject to the final approval of the boards of directors of two unnamed companies. The approval is expected to come within 10 days from the date of settlement.

Few details were revealed this afternoon due to what city staff said is a confidentiality agreement related to some of the terms.

It was announced the City of Burlington will receive $1.5 million in cash. It will not have to pay out anything.

The city is also not required to pay a $500,000 holdback to original contractor Harm Schilthuis and Sons.

The settlement also stipulates no contribution in any form shall be deemed an admission of liability.

“The settlement amount will more than compensate the city for its costs relative to defending the city’s interests,” said Pat Moyle, interim city manager.

Henry Schilthuis, president of Harm Schilthuis and Sons, said he was satisfied with the outcome of the mediation.

"I'm happy with the settlement," he told the Post. "It was positive news for us."

Schilthuis said the company is releasing the details of its financial commitment outlined in the settlement later this week.

He also said Harm Schilthuis and Sons is not one of the two companies whose boards is meeting to approve the settlement.

As a result of an FOI filed by the Burlington Post last fall, the city announced in January 2014 it had spent $1,349,952 on external legal fees.

The final bill for external legal costs was not released today. City staff said the total will be made public in the coming months.

Moyle said it could have cost an additional $1.5-$2 million to proceed to trial, which had an uncertain outcome.

Council gave staff a direction to settle during mediation talks, but not incur additional costs. The mediated settlement is binding and final.

Ward 2 Councillor Marianne Meed Ward said the city should apologize to residents for the drawn-out process, as well as to Hamilton-based Harm Schilthuis and Sons.

“They (contractor) were almost buried financially by this and certainly their reputation was dragged through the mud, so I think in terms of justice being done to that contractor, the details around the settlement should be disclosed,” she said. “…We have a settlement now, and we can move forward, but until the details of that settlement are released, the public doesn’t have a true picture of what happened and people aren’t being held accountable.”

Brant Street Pier: A timeline

2005: The pier is announced by Mayor Rob MacIsaac. Priced at $6.2 million initially, the pier was supposed to open in 2008 at an increased cost of $8.1 million. Of the total cost, the city is putting forward $1.2 million, or approximately 15 per cent. Other major funding partners include the federal and Ontario governments -- $2.2 million each -- under the Canada Ontario Infrastructure Program, and the Region of Halton at $2.5 million.

October 2006: The pier groundbreaking.

2008: The $8.1-million pier is struck by two significant problems — a faulty concrete pour that caused support beams to twist followed by a crane accident, both occurring about a month apart.

2009: Determination that 27 of the 36 steel support beams that form the pier’s substructure had to be replaced because they do not meet quality standards.

2008-09: All parties seek legal counsel.

March 2010: The contractor begins legal action against the city.

August 2010: The city files a defence to the claim and takes legal action against the contractor and a number of other parties.

August 2010 to May 2011: The parties attempt to resolve the disputes.

February 2011: Council votes to hire a new contractor and new project manager to finish the pier.

September 2011: The city chooses a new contractor through a tender process to complete the pier.

June 2013: The Brant Street Pier opens at cost of $14.4 million. This includes $4.4 million from federal/provincial government and $2.5 million from Halton Region.